I suppose I should follow up on my own post. The method above is what I do. That way all of the mysql databases are in one tar archive. But if you want seperate archives for each database then you could either use sperate scripts or make the one script look somethign like:
mysqldump --opt -uUser -ppass -h mysql.domain.com db_name > backups/mysql/db_name.$suffix.sql
tar -cf /home/username/backups/archives/mysql_backup.$suffix.tar backups/mysql/db_name.$suffix.sql
mysqldump --opt -uUser2 -ppass2 -h mysql2.domain.com db_name2 > backups/mysql/db_name2.$suffix.sql
tar -cf /home/username/backups/archives/mysql_backup2.$suffix.tar backups/mysql/db_name2.$suffix.sql
rm -r backups/mysql/
As long as this script isn't running close to midnight, when the date will change, it should work. Keep in mind this isn't tested, so it might not work. I don't think that you need to sperate out the dumps as far as the server's concerned - it's up to you.